00:00This is a weekly occurrence. I think we have to accept that fate now. So what is the latest in
00:05Warner Brothers?
00:05So to recap the moment we've all been waiting for, the whole will they or won't they, Warner Brothers agreed
00:11to finally engage with Paramount.
00:14And I have to give a shout out to my colleague Lucas Shaw who also broke this news with me.
00:18And I think the most interesting thing right now is that even though these two sides are engaging and they
00:23have seven days to do that,
00:25Warner Brothers gave Paramount until Monday at midnight to basically put down its best and final offer, clarify anything in
00:30the deal docs.
00:31But it still seems like there's some skepticism or acrimony between the two.
00:35Paramount yesterday in a press release acknowledging this time period where they're going to be able to negotiate said,
00:41Warner Brothers only gave us a limited amount of time.
00:44They said despite that we're still going to engage but they wish they would have had more time to negotiate.
00:48So it's interesting because the two sides are putting each other at arm's length but we'll see if they can
00:52finally agree
00:53to some sort of better deal than what Netflix has on the table.
00:56Sounds like a lot of excuses.
00:58You know, it sounds like I did bad at the gym because I was tired or whatever, setting yourself up
01:01for that.
01:02What would it take for Paramount to be the winning suitor?
01:05What do they need to bring to the negotiating table?
01:07So they'll have to raise their offer and what Warner Brothers really wants is for Paramount to basically adopt the
01:13merger agreement
01:14that Netflix has already agreed to which is pretty permissive in terms of allowing Warner Brothers to operate
01:20in the interim between signing and closing.
01:22And so if Paramount were to just do that, the Warner Brothers board would probably be receptive to that
01:27but it's going to take a higher price as well.
01:29Once they do, if they do raise their offer price beyond $30 or $31, which is what they suggested they
01:35might be willing to go past.
01:38If the board determines that it's superior, then Netflix will have a chance to match that, four days to match
01:43it.
01:44And if they do match or tie, they win.
01:46So a lot could happen from here.
01:47So a lot could happen from here.
01:47So a lot could happen from here.
Comments